29 March 2015

Borse Dubai broke law, but Swedish regulator won't take action

23 August 2007  |  6972 views  |  0 OMX

Sweden's Financial Supervisory Authority (FSA) will not take any action against Borse Dubai, despite concluding that the exchange broke the law when it announced the purchase of a 28.4% stake in OMX.

In a statement the regulator says: "Finansinspektionen rules that the press release that Borse Dubai made public on 9 August 2007 was a public takeover bid as defined in the Act on Takeovers in the Stock Market."

The statement continues: "When Borse Dubai made the press release public it had not undertaken to follow the rules that Nordic Exchange Stockholm has stipulated for such offers. As a result, FI notes that Borse Dubai has breached the law."

However, Finansinspektionen says that it will take no further action against Borse Dubai because the Middle East exchange has subsequently complied with the Act.

The exchange undertook to follow the rules of the Nordic Exchange Stockholm on August 16 before making an unsolicited $4 billion bid for OMX the following day - trumping Nasdaq's $3.7 billion offer.

The ruling - which Borse Dubai says it acknowledges - means the exchange can now continue with the planned takeover.

However, a recent report from Rosenblatt Securities raised doubts about Borse Dubai's takeover chances even before today's decision by the regulator.

The report says: "As the FSA must ultimately approve any deal and since the exchange is considered a strategic industry, its tone thus far does not bode well for Borse Dubai being approved as a fit and proper owner of the OMX."

Subsequent to the FSA's ruling, the Swedish government, which owns 6.6% of OMX, says it will also look into whether it is able to sell its stake to Borse Dubai, or whether it will sell to an alternative bidder.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

20 August, 2007
17 August, 2007
27 June, 2007
25 May, 2007
24 May, 2007
27 April, 2007
12 February, 2007
19 December, 2006
12 December, 2006

Related company news


Who is commenting?

Top topics

Most viewed Most shared
Banking has reached a digital tipping poin...
9673 views comments | 53 tweets | 30 linkedin
Europe sets the pace as fintech investment...
5162 views comments | 28 tweets | 19 linkedin
Google preps Gmail bill payment feature
4550 views comments | 13 tweets | 12 linkedin
Barclays and PayPal join Government ID acc...
4368 views comments | 10 tweets | 11 linkedin
Credit Suisse paper offers qualified bitco...
4111 views comments | 5 tweets | 9 linkedin

Featured job

Brussels, Paris or Frankfurt

Find your next job